ECOSOC Forum on Financing for Development Follow-Up2026 in-depth review: Domestic and International Private Business and Finance Interactive Discussion

Private sector investment is fundamental to cover the financial gap required to transform towards more efficient, inclusive, resilient and sustainable agrifood systems. Capturing said financing is not without its challenges considering the risks associated with agricultural production. Moreover, this investment necessitates evidence of profitability.

Key to de-risking and demonstrating return on investment is robust data and analysis. Similarly, innovative financial instruments such as blended finance, and partial credit guarantees, among others, are essential to de-risk agrifood investments and encourage the mobilization of private commercial capital towards interventions that bring about positive socio-economic and environmental benefits, particularly for the poorest and most marginalized people.

At the same time, there are no one-size-fits-all solutions. Holistic approaches that engage a range of stakeholders, from resource partners to multilateral development banks and international financial institutions, are required. Concessional finance is critical to reduce the risks associated with weaker enabling environments in some low-income countries that raise the cost of capital and hinder the scaling of innovations.

Accelerating agrifood systems transformation demands targeted investment underpinned by solid evidence accompanied by country ownership and alignment to national priorities. To this end, FAO developed the Hand-in-Hand Initiative, which uses advanced data tools and geospatial analysis to identify key areas with the greatest needs and the most agricultural potential, supporting Members to pinpoint and build the case for investments that transform their agrifood systems.